Kansas coach Mark Mangino holds aloft an orange as KU athletic director Lew Perkins, right, looks on.

Turns out, BCS does equal dollar signs for Kansas University football coach Mark Mangino.

Mangino, who led the Jayhawks to a 12-1 record and Orange Bowl victory in 2007, signed a contract extension Tuesday that will pay him $2.3 million a year through 2012 – an increase of $800,000 from his previous deal.

The seventh-year coach is slated to make $229,900 in base salary pay and an additional $1,770,100 per year for “educational, public relations and promotional duties.” According to the deal, Mangino also could earn up to $675,000 in performance-based incentives in any given year, as well as a retention payment of $1,500,000 if he remains Kansas’ coach through Dec. 31, 2012. The funds used to cover the contract were raised by Kansas Athletics. No tuition dollars or state funds were used.

“I want to thank Chancellor (Robert) Hemenway and (athletic director) Lew (Perkins) for their strong and continued support,” Mangino said in a statement. “We all share the same vision for excellence in our football program. I appreciate their support of our mission to keep KU football a nationally ranked and respected program, both on the field and in the classroom.”

After going 2-10 in 2002, his first season with the Jayhawks, Mangino has led Kansas to bowl appearances in three of the past five years and, with a 37-36 career record, is the fourth winningest coach in school history.

Before the start of the 2006 season, Mangino signed a five-year contract that would have paid him $1.5 million a year, plus incentives, through 2010.

But 2007 changed all that.

The new deal comes on the heels of what many consider to be the most successful football season in school history. Kansas finished 12-1 (7-1 in the Big 12) and notched its first BCS bowl game victory after beating third-ranked Virginia Tech in the Orange Bowl. The Jayhawks finished the season ranked No. 7 overall – the highest finish ever by a KU football team in the Associated Press poll.

In the process, Mangino earned national coach of the year honors from multiple outlets, including Sporting News magazine and the AP.

“This is an appropriate reward for someone who has done a terrific job with the Kansas football program,” Perkins said. “Chancellor Hemenway and I think it’s important that we not only reward Mark for the job he’s done, but also give him the support and stability he needs to keep this football program a successful and nationally respected program.”

The Kansas football team opens its season Aug. 30 at home against Florida International.